The Analysis On The Performance Of M&A For China Public Companies Based On EVA

Since the end of 19th century the first wave of Merger & Acquisition (M&A) has happened in America, Enterprise's M&A are in the ascendant. China's securities market has also stirred a M&A wave along with China's enterprise reform and the development of securities market since the midst of 1990. The arguments are fiercely discussed about evaluating the performance of M&A and the EVA method.Firstly,the two main methods which are frequently used to evaluate the enterprise's performance, are introduced in the paper, and the their shortcomings are also involved.The corporation have been picked as samples, the M&A activities have happend in these companies in 2002.the M&A's influence on performance has been studied.The relationship between EVA and the traditional index of the Enterprise's evaluation, for instance, Net operate cash fiow(NOCF),Earnings Per Share(EPS), is also been studied through demonstration analysis, in order to prove the appraisement effectivity of EVA .We discover that EVA has more consistent and more correlative than NOCF after some statistics have been done about the involved variables, and the relativity and unitary regression analysis and plural regression analysis have also been studied.However, as a whole, goodness of fit of EVA and the involved variables is low, the R value shows that the relationship is weak. The conclusion has been drew finally that the interpretability of EVA is poor in China's market.